Week 3 assignment and Discussion

Read Case 6-2 Research Helps Whirlpool Keep Its Cool at Home, Act Local in Emerging Markets on page 207.

Write a 700- to 1,050-word paper in which you provide detailed answers to the following discussion questions at the end of the case study:

· Describe Whirlpool's global marketing strategy. Does Whirlpool use an extension product strategy or an adaptation product strategy?

· What is the primary reason people buy and own major appliances such as a washing machine? Is there a secondary reason as well?

· What are the key lessons to be learned from Whirlpool's experience in emerging markets?

Utilize outside source material to support your ideas, and include analytical data specific to this study.

Cite at least three outside references in addition to your textbook.

Format your paper consistent with APA guidelines.

Resources:

Case 6-2: Research Helps Whirlpool Keep Its Cool at Home, Act Local in the Emerging Market

Overview: Whirlpool, an American company selling home appliances, is using extensive research methodologies to adjust to new markets around the globe. The market entry strategy of purchasing local established companies combined with adjusting to the needs of local market seems to be successful for Whirlpool.

6-10. Describe Whirlpool’s global marketing strategy. Does Whirlpool use an extension product strategy or an adaptation product strategy?

Whirlpool’s basic market entry strategy was purchasing local established appliance companies, merging with already existing markets. In Europe, Whirlpool invested $3 billion total to the local market. Whirlpool became number three on the European continent, but didn’t move beyond it to Japan, Asia, and Latin America as was projected. To cope with resulting appliance problems in Europe, Whirlpool used global part-sourcing strategy that helped the company to trim down the number of suppliers by replacing sales organizations in 17 separate countries with four regional sales offices and by reducing the number of warehouses.

Whirlpool uses a product adaption strategy by emphasizing product platforms as a means to product localized versions of its products.

6-11. What is the primary reason people buy and own major appliances such as a washing machine? Is there a secondary reason as well?

Owning a washing machine is second only to a cell phone as an “aspirational” product. Consumer research shows that consumers in different countries prefer different types of features based on culture and lifestyle.

6-12. What are the key lessons to be learned from Whirlpool’s experience in emerging markets?

Whirlpool jumped into the Chinese market without using extensive consumer research methodologies such as surveys and interviews. The company’s success was the “T-4” strategy (offering different home appliances, not just washing machines) and emphasize on the middle-class consumers. The key lesson is that in a country with a high rate of low-price competition it is necessary to use a strategy aiming at quality and uniqueness, not price. When entering Brazil, they did extensive research, but again, not consumer research.